Cross-border e-commerce takes off
Sales soar, quality improves, bright future beckons as global consumers fall in love with little-known Chinese brands
Here’s a somewhat underappreciated China story: the rest of the globalized, digitalized world can’t have enough of locally made goods, thanks to the planet-wide reach of cross-border e-commerce platforms, including those based in the country.
This story is not exactly a sequel to the one about China having been the world’s leading factory for manufactured goods over the last few decades.
It is not about leading Chinese tech brands such as Xiaomi, Huawei, Vivo and Haier that are well known outside the country either.
Instead, this story is about little-known but globally successful Chinese brands and companies such as Ecovacs. department, said: “We’re building our own brand and investing 10 percent of our annual revenue in research and development. We have over 1,000 patents both at home and abroad.”
Qian said Amazon offered Ecovacs helpful guidance on consumer demand analysis based on accurate data. It also imparted professional training in operations and taught market expansion strategy.
Like Ecovacs, tens of thousands of China-based vendors now sell their products globally through Amazon Global Selling, a mechanism that leverages the online marketplace’s branches in 10 countries, including the United States, the United Kingdom, Germany, Canada, Japan and Australia.
This helps build visibility for their brands globally. A virtuous cycle ensues: brighter brands generate higher sales; next, greater consumer expectation prompts the brands to invest in R&D and improve the quality of their products; this, in turn, encourages firms such as Amazon to launch plans like “service+”, a program to impart Chinese sellers lessons in the art and science of crossborder e-commerce.
Thanks to e-commerce, small and medium-sized Chinese firms now receive consulting services for enterprise development strategy and operating model, as well as tailor-made solutions for business expansion at different stages.
“China’s cross-border e-commerce is thriving, which brings about huge opportunities for Chinese enterprises. But, it also brings about new issues and challenges. By leveraging Amazon’s global network and resources, we could provide customized solutions to meet the needs of Chinese sellers and cultivate cross-border e-commerce talent in China,” Dai Jingfei, vice-president of Amazon China, said.
In 2017, sales revenue from third-party sellers on Amazon’s online marketplace accounted for 50 percent of global sales, among which the SMEs accounted for over 25 percent of Amazon’s overall third-party businesses.
More than 15 percent of Chinese consumers made purchases worth $85.76 billion from cross-border e-commerce platforms in 2016, according to consultancy eMarketer.
By 2020, a quarter of the Chinese population, or more
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